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MSEB may buy 200mw from TEC 

Sanjay Jog  
Mumbai, April 30: The state's power body, Maharashtra State Electricity Board (MSEB) is negotiating with the Tata Electric Companies (TEC) for the purchase of about 200 mw of power-at a per unit cost of Rs 2.60-to overcome the peak demand shortfall in the state.

MSEB sources told The Financial Express that it will have to charge per unit cost of nearly Rs 4.20 to low tension consumers and Rs 3.50 to high tension consumers after factoring in transmission and other costs.

Sources said that the talks are incomplete as TEC's per unit cost is `high'. MSEB has asked the TEC to rework the per unit cost and come with new cost structure.

TEC, which had sold nearly 100 mw to MSEB about two years ago, is believed to have justified the per unit cost of Rs 2.60 mainly on account of the hike in the fuel cost adjustment (FCA) which was given at around Rs 1.15. MSEB's FCA is around 15 paise.

MSEB is of the view that TEC's variable cost of Rs 2.60 which is more than Dabhol Power Project's Rs 2.33 will kick off another controversy in the politically sensitive situation. MSEB has thus reiterated its plea to TEC to rework the cost structure.

The peak demand shortage is more than 1,500 mw despite the ongoing load shedding programme undertaken by the MSEB in all over the state. This has compelled MSEB to go in for distressed load shedding.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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